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Integrated Marketing Communications Case Studies

Case Studies Some Thoughts on How to Use Cases
This section of the manual includes three case studies that will test the students ability to apply integrated
marketing communications concepts. Each assignment can be completed using the standard case study
format or by using the marketing communications plan format. Refer to both models that are included
in this section. Each of these cases has been class tested. They work! Students will quickly identify with
the various products and situations and will quickly see how they are marketed in Canada.
Naturally, cases become outdated as soon as they are written so it is assumed that you will instruct your
students to conduct appropriate secondary research to update essential case facts. Each case provides
some data about market size, sales volumes and market shares, but conditions in the marketplace change
quickly as new brands, new trends, and other external influences enter the picture.
Each of the three cases requires as a minimum a good advertising strategy (creative and media) but it is
up to the students to look at the bigger picture and determine how the other components of the marketing
communications mix will be useful in finding a solution for the challenges that are presented. The
instructor can also play a role in determining which components of the mix should be considered. You
have the flexibility to be very focused (advertising only) or very broad (any and all components of the
IMC mix).
Each case can be used for the purposes of a written submission or as a written submission with
presentation. Since time is always a problem, my preference is for one case to be a written submission
using the case study format and another case to be a written submission with a presentation near the end
of the course. Personal experience shows that only one or two cases can be accommodated in a onesemester course. Three cases are provided for you to choose from.
The case studies and the key challenge in each case are a follows:
Cadbury Trebor Allen Inc. Crispy Crunch
Crispy Crunch was once a very popular chocolate bar but it has fallen on hard times. The brand has not
received any meaningful marketing communications support for several years. The task is to reintroduce
the bar to the youth market and get it back into the top 10 bars in Canada.
Labatt Blue
Blue had a very successful campaign called Out of the Blue. It was replaced with a campaign called
Cheers. To Friends. The new campaign has not worked and Labatt is losing ground to archrival Molson
Canadian. A new marketing communications campaign is urgently needed to reverse Blues fortunes.
Levi Strauss & Company GWG Jeans
Levi Strauss recently bought back the rights to the GWG brand and will begin marketing the line in
Canada. GWG is a very old and reliable brand that was very popular with baby boomers when they were
young. Levis needs a campaign that will resurrect interest in the GWG brand among the baby boomer
segment of the population. Can they be tempted to buy GWG once again?

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Case Study Model

The following is a proposed case study model. Feel free to adapt and modify it to suit you own teaching
and learning needs.
When preparing a case solution it is expected that students will conduct additional secondary research.
The capture of good information will enhance the quality of the analysis and the recommendation.
Executive Summary (Written Report Only)
The executive summary should include a concise statement of the problem, a short summary of the major
points arising from your analysis, and the major recommendations from your analysis.
Introduction
The decision to include and introduction is left to the discretion of the writer. If it is included, the
introduction should be brief and include information regarding the nature of the company, the product, the
market, etc.).
Problem
Identify the problem in a clear, concise manner. Ensure that the problem is distinguished from symptoms.
Dont state the problem as choosing from between a number of alternative strategies. The problem should
pose a question searching for a solution.
Situation Analysis
Most reports include some form of situation analysis (often referred to as SWOT analysis). In this
phase it is important that you dont regurgitate the facts of the case. The reader/listener is only concerned
about strengths, weaknesses, opportunities, and threats that have implications for the problem or solution
of the problem. Interpretive comments should be provided for strengths, weaknesses, opportunities and
threats. Typically, strengths and weaknesses are internal in nature (e.g., corporate objectives, resources,
expertise, etc.) while opportunities and threats are external in nature (e.g., competition, market
characteristics, technology, social trends, etc.).
Alternatives
Identify a series of alternatives that could resolve the problem. Make sure that issues such as
segmentation and targeting, positioning, and the pros and cons of each alternative are discussed.
Recommendation
Make a specific recommendation to resolve the problem. Proper justification must accompany the
recommendation, and the recommendation must consider company objectives, marketing objectives, and
the resources of the company. See the next section for more details.
Summary Plan
Being concise as possible while providing proper detail on the various components of the marketing
communications mix you are recommending, provide details about the following:
1.
2.
3.
4.

Marketing Objectives
Marketing Communications Objectives
Target Market Profile
Positioning Strategy Statement

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From this point on the content will include specific objectives, strategies, and executions (or
appropriate details based on your preferences) for whatever components of the marketing
communications mix you are recommending.
5. Marketing Communications Mix
Advertising (Creative and Media)
Direct Response Communications
Online Communications
Sales Promotion
Public Relations
Event Marketing and Sponsorships
Personal Selling
6. Timeline for Activities
7. Budget Allocation for Recommended Activities

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Marketing Communications Plan Model

The following is a proposed model for completing a marketing communications plan. It has been
developed based on Figures 2.7 and 2.11 in Chapter 2 of the textbook. Please adapt it so it meets your
own teaching style and needs.

Marketing Background
External Influences
Economic Trends
Social and Demographic Trends
Technology Trends
Regulatory Trends
Market Analysis
Market Size and Growth
Market Segments (Product Classifications)
Seasonal Analysis
Competitor Analysis
Market Share Trends
Marketing / Marketing Communications Strategy Assessment
Target Market Analysis
Consumer Data
Consumer Behaviour (Loyalty)
Product (Brand) Analysis
Sales Volume Trends
Market Share Trends
Marketing / Marketing Communications Assessment
Image and Reputation

Marketing Communications Plan

Target Market Profile
Demographic
Psychographic
Geographic
Positioning Strategy
Positioning Strategy Statement
Positioning Grid
Budget
Budget Available for Plan

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Advertising Objectives (whatever is relevant to plan)
Awareness
Preference
Trial
Image
Creative Plan
Creative Objectives
Key Benefit Statement
Support Claims Statement
Creative Strategy
Creative Execution
Media Plan
Media Objectives
Media Strategy
Media Execution
Should any of the marketing communications mix components listed below be included in the plan,
appropriate objectives, strategies, and execution details will be included for each.
Direct Response
Online Communications
Sales Promotion
Public Relations
Event Marketing and Sponsorships
Personal Selling
Media Blocking Chart
By Media
By time of year
Calendar for Other IMC Activities
By Activity
By time of year
Budget Summary
Allocation of dollars by various media, activities, time of year, etc.

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Cadbury Trebor Allan Inc.Crispy Crunch

Advertising works and Crispy Crunch has the sales results to prove it. In 1989, a new advertising
campaign for Crispy Crunch was launched featuring the slogan to good to share. In the space of one
year, Crispy Crunch moved from 8th place to 1st place among Canadian chocolate bars. 13 years later,
Crispy Crunch wants to do the same thing again.
The Company
Cadbury Trebor Allan Inc., is a subsidiary of Cadbury Schweppes PLC, a UK-based International
manufacturer and marketer of confectionery products and beverages. The company is one of the oldest
chocolate manufacturers in the world and has been making milk chocolate since 1905. Cadbury Dairy
Milk chocolate was introduced to Canadians in the 1950s. Today, the companys chocolate bar portfolio
includes Dairy Milk, Fruit & Nut, Caramilk, Crispy Crunch, Mr. Big, Fusion, Wunderbar and Crunchie.
The Market and Competition
The chocolate bar market is the largest segment within the candy and chewing gum market. Total
chocolate bar sales in 2001 (latest year available) amounted to $749 million divided between four large
and resourceful manufacturers: Cadbury Trebor Allan, Nestle Canada, Hershey Canada and Effem Foods.
The market is mature and experiences only marginal growth in dollar sales from year to year.
The market shares of the leading brands are included in Figure 1. Based on the bars listed in the top 10,
Hershey appears to be the market leader in Canada followed closely by Nestle. Cadbury presently ranks
third. Cadburys leading brands are Caramilk and Cadbury Milk Chocolate. Over the years many new
products have entered the chocolate bar market however it is the old established brands that continue to
lead the pack in popularity; brands like Kit Kat, Oh Henry, Coffee Crisp and Smarties all date back to the
1950s and 1960s.
Figure 1
Chocolate Bar Market Shares
Rank
1
2
3
4
5
6
7
8
9
10

Brand
Reese Brand (H)
Kit Kat (N)
Caramilk (C)
Oh Henry (H)
Hershey Milk Chocolate (H)
M&Ms (E)
Coffee Crisp (N)
Cadbury Milk Chocolate (C)
Smarties (N)
Mars (E)
All Other

2001
6.3
5.4
4.9
4.7
4.6
4.5
4.2
4.0
3.8
3.7
53.9

2000
5.9
5.0
5.2
5.0
4.1
4.9
4.2
3.9
4.1
4.2
53.5

Change
+0.4
+0.4
-0.3
-0.3
+0.5
-0.4
0.0
+0.1
-0.3
-0.5
+0.4

C = Cadbury Trebor Allan; (H) = Hershey Canada; (N) = Nestle Canada; (E) = Effem Foods.

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Since the market is mature, the only way to build a brand is to steal market share from another brand.
Crispy Crunch is no longer a top ten brand so the immediate goal is to take action to rejuvenate interest
and excitement in the brand. Crispy Crunch wants back into the elite group of brands.
In terms of marketing, all brands employ similar strategies. Each chocolate bar has a unique feature that
separates it from the rest of the pack. All leading brands are available in the same location; the primary
distributors are convenience stores and drug stores followed by grocery outlets, vending machines and
other types of discount stores. The complete range of product lines offered by the four manufacturers is
outlined in Figure 2.
Chocolate bars are sold at the same price whether its regular price or special sale prices. All
manufacturers provide periodic discounts to wholesalers and retailers in order to increase volume and
offer lower prices for consumers. When a chocolate bar goes on sale the retailer usually merchandises the
product in a bin display at point-of-purchase.
Figure 2
Chocolate Bar Product LinesMajor Manufacturers
Cadbury
Caramilk
Dairy Milk
Crispy Crunch
Mr. Big
Fusion
Wunderbar
Fruit & Nut
Crunchie

Nestle

Effem

Aero
Kit Kat

M&Ms
Mars

Smarties
Crunch
Rolo
Coffee Crisp
Mirage
Big Turk
Butterfinger

Snickers
Twix
Milky Way
3 Musketeers
Bounty
Dove

Hershey
Oh Henry!
Reese Peanut Butter
Cups
Reese Sticks
Glossette Raisins
Glossette Peanuts
Skor

Marketing Communications
Nestle traditionally advertises Kit Kat and Smarties. Campaigns for Smarties tend to focus on the colours
of the product. In 2002 they ran a contest to select the next colour that would be added to the product line.
From three possible choices the colour purple emerged as the consumers favourite.
In 2002, Nestle decided to dust off the Aero bar, a brand with virtually no image and no advertising
support for the past seven years. A new television spot dramatizes the art of the melt in a womens
mouth. Obviously, there are sexual undertones to the strategy. Apparently, marketing research determined
that users like the product to sit in their mouth, and suck on it. It has something to do with the aerated
nature of the product (the bubbles inside the chocolate). That knowledge encouraged the development of
the message strategy.
Hershey Canada invests most of its advertising budget on Reese Peanut Butter Cups. The combination of
peanut butter and chocolate is extremely popular with children. The ads have a youthful orientation and
show kids having fun eating the bar. Hershey uses point-of-purchase material and their Company Web site
to communicate details about the promotions.

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Effem Foods supports M&Ms with media advertising. A product similar to Smarties, but they melt in
your mouth, not in your hand. That famous phrase has played a key role in building the brand. The
M&M Guys, two animated characters that look like the product appear in most ads and promotions for
the brand.
Cadbury supports its leading brands with media advertising. The television advertising for Caramilk is
one of the most recognized and long-standing campaigns in the industry. The campaign has helped build
and protect Caramilks position as a market leader.
Since 1969, Caramilk advertising has posed the question, How do they get the caramel into the Caramilk
bar? Over 30 years there have been 15 different commercials talking about the Caramilk secret. A good
idea does not wear out! Caramilks latest sales promotion offers a grand prize of $10,000 in a contest
called Caramilk's Search for Canadas Best Kept Secret. Contestants must present their secret on
videotape or by email submitting it to Cadbury for judging. Complete details of the promotion are
communicated at a special brand Web site, www.caramilksecret.com.
Crispy Crunch
Crispy Crunch is totally different form any other chocolate bar. The unique feature is the crystallized
peanut layers in the middle of a very slender bar. The brittle texture of the layers is very different from
other bars; most other bars have a chewy center. Today, the delicious, flakey, roasted peanut layers
covered with Cadbury chocolate make Crispy Crunch the companys third largest brand and the 12 th
ranked brand in the nation.
Crispy Crunch stands as one of the greatest success stories in the Canadian chocolate bar industry.
Between 1989 and 1990, it jumped seven places to become the number one brand in the nation. That
success was attributed to an advertising campaign that really caught on with older teenagers and young
adults in their early twenties.
While chocolate bars are mainly consumed by youth under the age of 16, Crispy Crunch decided to target
a slightly older audience with the new advertising campaign. The strategy was sound and the execution
perfect! There were several ads in the campaign. All ads featured the fun-stuff that goes on in a malefemale relationship. The ads were based on humorous and slightly sexual situations, that showed the
partners tussling together in order to secure the other persons Crispy Crunch, or thinking up situations
where one partner would steal the bar from the other. The theme was simple: the only thing that tastes
better than my Crispy Crunch, is someone elses Crispy Crunch. The tagline was to good to share.
The target market could identify with the situations that were presented. The fact that it produced solid
business results makes it one of Cadburys best ever advertising campaigns.
The Challenge
The immediate goal for Crispy Crunch is to build market share so that the brand cracks into the top ten in
Canada once again. The market share objective has been set at 4.1%. For the past three or four years the
brand has not had any significant advertising support so its performance has languished. While the brand
has a loyal following it is imperative that new users try Crispy Crunch if the brand is to grow.
Crispy Crunch would like to develop an advertising campaign that will have an impact on the 15 to 24
year old age group. The creative strategy must fit in with core attitudes and expectations of the target
audience. The company is open to any and all ideas that will rekindle interest and excitement in Crispy
Crunch. This age group is difficult to reach so the media component of the plan is crucial. Therefore, the
company is open to non-traditional suggestions that may prove effective in building excitement. Proper

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justification must be provided for all marketing communications recommendations. A budget of $650,000
is available. The plan must cover appropriate periods of one calendar year. It is a Year 1 launch plan.
Adapted from Whos Got What, Report on Market Shares, Marketing, May 27, 2002, p. 10, Aero melt
disappoints, Marketing, July 15, 2002, p. 19, www.ctai.ca, www.hersheycanada.com, www.nestle.ca,
www.mars.com.

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Labatt Blue
Canadian Beer Market
As of the end of 2002, Labatt Breweries controlled 43.3% of the Canadian beer market, making it the
number two brewer in the country behind Molson, which has a market share of 45 percent.
Microbreweries and imported premium beers account for the remaining market share.
Major brands tend to focus on 9 to 24-year-old males, and as a result may be missing opportunities by not
addressing different demographics and the product benefits of beer. However, targeting 19 to 24-year-olds
does encourage early brand adoption. According to Robe Guenette, a former beer executive at Molson,
Brand choices in beer are made early in life. If you get a younger drinker early, they tend to stay with
you. Its really about the heavy male drinker and thats where the volume is.
Demographic trends are not on the side of the brewing industry. Older age groups do drink beer but much
less of it than before. The 19 to 30-year-old group in the 1980s represented 20% of the market, today it
represents 18%, and by 2007 it will slide to 15%.
Labatt has tried to shift the age focus on some of its brands. Carlsberg and Bud Light are slanted slightly
towards older males and females. Labatt has also invested in advertising for its premium and imported
brands like Stella Artois, Sol, and Guinnesswith programs that reinforce quality and serving techniques.

Blue Versus Canadian

The history of Canadas two leading brands, Labatt Blue and Molson Canadian reveal a correlation
between effective advertising and market share. For years both brands have been one-upping each other
with good creative. The best creative seems to win and market share nudges upward for the brand with
the best advertising.
To illustrate, Labatt Blue enjoyed considerable success with a campaign called Out of the Blue that
started in 1998. It enjoyed a five-year run (see Advertising History section for more details). While that
campaign was in progress Molson Canadian launched its I am Canadian campaign. The launch
commercial featured an average guy named Joe bellowing out how Canadians are different from
Americans. Called The Rant the commercial garnered all kinds of publicity and effectively re-launched
the Canadian brand. The battle between Blue and Canadian was in full swing! So intense is the battle that
both brands claim leadership. One brand has 13% the other has 12%. It depends on which company is
releasing the information.
In recent years sales promotions have also played a role in brand success. In package giveaways during
the peak summer season were used as a means to build brand loyalty but they proved costly. Many
drinkers would switch brands temporarily simply to get the premium, only to revert back to their regular
brand when the premium deal ended. This past summer price wars were the name of the game. Smaller
brewers such as Lakeport Beverages, Sleemans and Mikes Hard Lemonade were offering 24-packs as
low as $24.00 (regular price is $32.00). Molson and Labatt responded with their beer-for-a-buck and 24for-24 deals, offering discounts on holiday weekends. Price discounting by smaller competitors and
questionable marketing and marketing communications strategies for both Blue and Canadian has
resulted in declines in market share in the past year.

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Labatt Blue
Labatt Blue was first brewed in 1951. Blues clean, refreshing taste is a classic lager that is light in colour
with a slight hop aroma, good balance, fruity character and a slightly sweet taste.
Labatt Blue sales have been sagging in recent years. As the leading brand within the company, it is not
meeting expectations. A press release dated May 29, 2003 summed up the plight of Blue. John Brock, the
new CEO of Interbrew SA, the parent company of Labatt Brewing Co. Ltd., said that turning around
Labatt Blue is a top priority and they would give the critically important brand a major marketing push
in the summer of 2003.
The new marketing push is designed to stop the market share from sliding further. The multi-faceted
marketing effort included media advertising, packaging innovations, promotions, and event sponsorships.
To highlight the importance of Blue, consider that it is Labatts top-selling beer in Canada, and Canada is
the biggest source of revenue for Belgian-based Interbrew. It is important to turn things around. Blue is
also sold in the United States and ranks as the number 3 imported beer there.
The good news for Interbrew is that many of its other brands in Canada are gaining share, including its
global flagship, Stella Artois. Becks, another global brand and Canadian brands Alexander Keiths and
Kokanee, are also enjoying sales gains. The bad news is that all four brands combined arent as big as
Blue.
The problem that Blue faces is three-fold. First, there is intense competitive pressure from Molson
Canadian. Second, premium import brands and craft beers are growing in popularity. Mainstream brands
like Blue are feeling the heat. Third, the heavy consumers of beer, adults aged 19 to 29, is a shrinking
segment of the population. Since older age groups drink less beer, the future is uncertain unless effective
branding and marketing campaigns are implemented.
In an attempt to revive Blue, a new advertising campaign was developed for 2003 (see Advertising
History section for details) along with some interesting sales promotion activities. The brand sponsored
festival-type promotions and there were new and prominent Labatt Blue dispensers available for bars and
pubs. New packaging also played a role. For the summer a new 28-pack was introduced and there were
painted-on labels featuring the original six NHL teams. Refer to the Web site for more details about
packaging and promotions (www.labattblue.ca).

Advertising History
Out of the Blue
The Out of the Blue campaign was launched during the Winter Olympics of 1998. The launch
commercial was one of the most remembered commercials among all brands that were associated with the
Olympics. That now famous commercial featured a hockey game that spontaneously broke out on the
streets of downtown Toronto. The ad started with a young man carrying a hockey bag and stick. He flicks
a crumpled can at someone elses feet. That person pulls out a stick (coincidence or what?) and fires the
can into the street. A businessman carrying a brief case and an umbrella stops to play goalie, with a
bicycle rack serving as the net. Men rush out of nearby offices, ties flapping, to join in. Onlookers cheer
and do the wave, until someone yells Streetcar! and the game ends.

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People seemed to identify with that ad. It offered a sense of fun, a sense of cultural relevance, and people
just plain enjoyed watching it. Numerous executions followed.
In one commercial called Road Trip a surly bouncer turned away some young Canadian lads from a
Detroit nightclub. Dejected, they file into a nearby cab where they chance upon the Stanley Cup (left
there by some eager Detroit Red Wing players entering the nightclub). Our heroes return to Canada with
the Cup and at an evening party a legion of hockey faithful toast their Cup coup, while Frank Sinatras
rendition of They All laughed plays in the background. The song ends with the line Whos got the last
laugh now? The tagline for these commercials was A whole lot can happen out of the Blue.
In another spot called Diner four friends are sitting in a restaurant booth reminiscent of the restaurant in
the film Pulp Fiction. One of them accidentally squirts ketchup on another. Next thing you know all four
people are participating in the fun and games. Bodies duck for cover, and within seconds the entire
restaurant erupts into a spontaneous food fight. The climax of the spot comes when the original shooter
dives and slides in slow motion across the floor to retrieve a fallen ketchup bottle. While spinning he
accidentally shoots the chef, a mammoth individual who to this point has remained above the fray, his
outfit is still a pristine white. The suspense builds. Will the chef react like an authoritarian figure, bringing
the fun to an end? Or will he join in. He joins in!
This campaign had an open-ended platform to work from. The agency creative team could do something
different each time out as long as the ads are linked in a manner that gives the campaign a sense of
continuity.
Despite the success of this campaign, company executives believed it had run its course and the
advertising agency was instructed to devise a new campaign strategy for 2003.
Cheers. To Friends.
The new campaign theme was Cheers. To Friends. Taking a humorous approach, the new campaign
shows the kinds of pranks that guys will do when they are together with friends. A pool of four television
commercials aptly depicts situations that the target will readily identify with.
The initial spot called Weekends depicts guys engaging in frat-style stunts and practical jokes. One
victim gets his pants pulled off while sitting in a washroom stall. Another friend is sitting in an outhouse
when two of his friends tip it over. Another friend is shown being pushed head first into a grocery display
in a supermarket.
A second commercial called Golf Balls shows a man dressed for work approaching his sports utility
vehicle. His friends are watching him as he approaches the vehicle and remark that he hasnt noticed
anything unusual. As soon as he opens the door, hundreds of golf balls pour out. The victim looks
helplessly back at his friends.
A third spot called Faucet showed several different people at a kitchen sink. When they turn on the
water a portable water hose from the side of the sink sprays them. The surprise spray leads to various
facial expressions and other body language. The reaction of each victim varies.
The fourth spot called Elevator shows one guy clad only in his underwear, being placed on a rolling
chair, inverted hockey sticks across his chest, and bound with tape so he cant move. His friends put him
in the elevator for other observers to enjoy. Up and down he goes.
All of these commercials can be viewed at the Blue Web site, www.labattblue.ca.
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During the summer of 2003 Blue showed two new spots. The first spot showed a young naked male clad
only in plastic wrap tied to a telephone pole on a busy city street. Around his neck was a sign with the
words Kiss the birthday boy. Embarrassed-looking females were passing by. The second spot shows
two males on their hands and knees searching for a lost ring amongst the grass. A trusting and
unsuspecting third male joins in. The original two males rise and grab the unsuspecting males underwear
buy the elastic band and tow him across the grassthe ultimate wedgey and a lot of giggles!

Current Situation
It is now the end of the 2003 summer season and Labatt is pondering its next move in advertising. The
initial assessment of the Cheers. To Friends campaign is not that favourable. It has not moved market
share and has had little impact in terms of attracting new users to the brand. However, to pull the plug on
a campaign after only one year is risky. In some respects it clearly indicates failure and often causes
confusion among consumers as to what a brand actually stands for. Some senior executives at Labatt feel
the current campaign does not offer sustainability. Thus far, the Cheers. To Friends strategy and theme
have been nothing more than a series of pranks. This type of execution may wear thin with the target
audience over an extended period.
Nonetheless, Labatt doesnt want to be caught short going into the spring and summer of 2004. It would
like its advertising agency to develop a new creative concept for Labatt Blue.

The Challenge
Your advertising agency will develop a new creative concept for Labatt Blue that can be executed in any
medium or any other element of the integrated marketing communications mix. Blue employs an
integrated marketing communications strategy so it is essential that the message be transferable to any
medium under consideration. Television is traditionally the primary medium. Other media include
newspapers, magazines, point-of-purchase, out-of-home, and a Web site. Should you recommend the use
of other components of the marketing communications mix (anything beyond advertising) you must
include appropriate objectives, strategies, and execution comments in the plan. The budget of $2.5 million
must cover all forms of marketing communications. Production costs will come from a separate budget so
you neednt be concerned with those costs at this time.
Specific Creative Requirements

One television commercial scenario (a written description of the commercial)

One print ad (magazine or newspaper)
One out-of-home ad (outdoor poster, backlit, transit shelter, subway poster, etc.)

This is a campaign so the client will be looking for continuity of message between all media forms.
Execution requests such as this are at the discretion of your instructor. Some courses only stress strategy
and do not get involved with execution matters (though it can be fun!).
Communications Objectives
1. To increase market share from 13% to 14% in 2004
2. To positively position Blue as the beer of choice among young beer drinkers
3. To encourage trial purchase in the peak summer season

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Budget
The budget is $2.5 million. Your agency must make appropriate recommendations for national, regional
and key market allocations of these funds. How the money is allocated largely depends on the media
strategies that are recommended. This plan must cover appropriate periods of one calendar year. For
example, a logical starting point could be May 1, and run through to April 30 the following year. The
ideal situation would have the new campaign start in May and run through the end of April the following
year

Procedure
In order to develop the creative concept the agency must first familiarize itself with the beer market in
Canada and the marketing communications practices of competing brands. Once all background and
brand information has been compiled and analyzed the next step is to devise a positioning strategy
statement for the brand. The focus will then shift to creative objectives. A concise list of creative
objectives should be developed followed by a key benefit statement and a support claims statement.
From there you will develop a media plan that will precisely describe the media objectives, media
strategies, and media execution. Objectives, strategies, and execution details must also be provided for
all other forms of marketing communications you recommend.

Client Requirements
Prior to developing the plan it is essential that you compile additional information about the beer market
in Canada. You are responsible for collecting the following information and including it in the appropriate
background sections of your plan:
Market Data
1. How big is the Canadian beer market and what is the rate of growth?
2. What segments exist in the beer market? Which segments are growing? Declining?
3. What external factors are influencing the sale of beer in Canada?
Competitor Data
1. What brands are classified as primary competitors for Blue?
2. What market share do they possess?
3. What advertising strategies (creative strategies and media strategies) do these brands employ?
Brand Data
1. What unique selling points does Blue offer? Look beyond the tangible product benefits.
2. How would you describe Blues image and reputation?
Target Market
1. Who is the primary target market for Labatt Blue (demographic, psychographic and geographic
variables must be considered)?
Note: The primary target is males aged 19 to 29. Other demographic variables may also be important. In
this market the pshycographic component is most important. Learn as much as you can about the
behaviour and lifestyle of your target market. This information is valuable input for planning creative
strategy. You can adjust the description of the target market at your discretion but proper justification
must be provided if you do so.

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Levi Strauss & CompanyGWG Jeans

On May 22, 2002, Levi Strauss & Co. (Canada) Inc. announced it would resume responsibility for the
manufacture, marketing and sales of GWG brand jeans. For the past four years the brand has been
manufactured and marketed under license by Jack Spratt Mfg. Inc. of Montreal.
The brand was originally licensed to Spratt so that Levi Strauss could spend more time on its two largest
brands: Levis and Dockers. Given the financial situation facing the company in recent years, strategic
direction has changed. The company now wants to round out its brand and pricing portfolio by taking
back the GWG line.
Company History
Levi Strauss & Co. is one of the worlds leading branded apparel companies with sales in more than 100
countries worldwide. The primary lines are Levis jeans and Dockers casual pants.
In 1873, Levis Strauss and Nevada tailor Jacob Davis patented the process of putting rivets in pants for
strength, and the worlds first jeansLevis jeanswere born. Today, the Levis trademark is one of the
most recognized in the world. The company now generates sales revenue of $4.3 billion worldwide.
The company is privately held by descendents of the family of Levi Strauss. It employs 15,200 people
worldwide (1,200 in Canada) and is organized and managed in three geographic regions: the Americas;
Europe, Middle East and Africa; and Asia Pacific.
The Americas region markets products under the Levis and Dockers brands. Levi Strauss Canada reports
to the Americas division. The Americas division is based in San Francisco and accounts for $2.9 billion
(67 percent) of the companys $4.3 billion total sales (2001). Net Sales by region are included in Figure
1.
Figure 1
Net Sales by Region

Americas
Europe
Asia

2001
2 859.5
1 111.8
372.7

2002
3 148.2
1 104.5
392.4

% Change
9.2
0.7
5.0

Total Company

4 344.0

4 645.1

6.5

Financial Position
Levi Strauss has encountered serious declines in sales over the past five years. From a high of $7.1 billion
in 1996, sales have skidded to $4.3 billion in 2001. Market share for Levis jeans have declined steadily.
As a result of the drastic drop in sales, Levi Strauss closed six manufacturing plants in the United States
and two plants in Scotland in 2002. The company is presently carrying a debt of $1.9 billion.
Sales continue the trend downward in 2002. Six months into the year, sales were $1.86 billion, or about
91 percent of sales at the same time in 2001. Restructuring charges of $144 million that were associated
with the plant closings had a dramatic impact on the companys profitability in the first half of 2002.

2005 Pearson Education Canada Inc.

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For a closer look at the companys financial situation refer to Figure 2.

Figure 2
Consolidated Income Statements$ in Thousands
Net Sales
Cost of Goods Sold
Gross Profit
Marketing, General & Admin,
Expense
Other Operating Income
Excess Capacity/ Restructuring
Charges
Operating Income
Interest Expense
Other Income Expense
Income Before Taxes
Income Tax Expense
Net Income
EBITDA Margin

12 Months 2001
6 Months 2002
6 Months 2001
4 258 674
1 858 802
2 040 320
2 461 198
1 090 674
1 147 891
1 797 198
768 128
892 429
1 355 885
617 739
662 224
(33 420)
(4 286)

(14 624)
141 078

(14 539)
---------

479 297
230 772
8 836
239 689
88 685
151 004

23 935
90 533
8 104
(74 702)
(37 351)
(37 351)

244 744
123 103
5 767
115 874
42 874
73 000

13.1%

3.2%

14.1%

Company Brands
With the reacquisition of GWG, the company will be focusing on three separate lines, each offering
different varieties, styles, and price ranges.
Levis are the original, authentic jean. They were a hit with baby boomers decades ago when they were in
their teenager years. The association with boomers has literally and figuratively nurtured the company
through its strongest phase of growth and decline in sales and profit. Unfortunately, Levis jeans have
fallen out of favour with todays youth. Levis jeans are perceived to be their parents jeans. For that
reason they will wear anything else but a pair of Levis. This perception is an ongoing marketing problem
and the company is struggling to find a way to reverse the brands fortunes.
A pair of Levis Red Tabs retails for around $49.99 to $54.99. They are sold in a cross-section of retailers,
including department stores, mass merchandisers, and specialty clothing shops across Canada. Levi
Strauss also operates 45 Levis stores across Canada. Levis is in the process of renovating its stores. The
new-look stores feature an in-vogue, minimalist layout. Gone is the traditional wall of cubicles filled with
piles of folded jeans. Levis has also decided to place greater emphasis on females by introducing some
trendy, low-rise styles, and a rack of premium vintage jeans at $150 a pop.
Dockers were launched in 1986. This brand and style of pant played a key role in the creation of khaki
pants and the shift to casual clothing in the workplace. The brand offers a variety of products including
tops, jackets and accessories for a wide range of consumers. In the casual clothing segment of the market,
Dockers is a leader.

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GWG has always been an integral part of the Canadian heritage. The Great Western Garment Company
opened in 1911, becoming the first jeanswear company in Canada. The brand was built on qualitythey
were durable jeans reasonably priced. GWG was the first brand to use pumice to stonewash jeans.
Historically, GWG was a strong brand. In 1972 GWG was a leading brand in Canada, controlling 30
percent of the market. Granted, at that time, there were a lot fewer brands on the market and there was no
such thing as designer labels and private label brands.
The image of GWG is more positive and workman-like than Levis. GWG jeans are now worn mainly
by men in construction, trucking, farming and similar occupations. The brand appeals to the comfort and
durability needs of its customers, who are generally over the age of 35. GWG has never been positioned
as a brand for females.
GWG jeans are marketed at a lower price point than are Levis. A pair of GWGs at retail are priced
anywhere from $29.99 to $34.99.
The Market and Competition
The jeans market in Canada is extremely competitive. Since the early 1990s, Levis has fallen out of
favour with younger target markets, and as a result, market share has dropped considerably. For all intents
and purposes, GWG is barely even on the radar screen. Retail sales of jeans in Canada in 2001 amounted
to $975 million. The mens segment accounts for 52 percent of sales ($500 million) and the womens
segment accounts for 48 percent of sales ($475 million).
Both Levis and GWG brands have been affected by the popularity of designer label jeans, private label
jeans, and new trendier brands such as Fubu and Paris Blues. Other popular brands among younger age
groups that have come on the scene in the past ten years include The Gap, Calvin Klein, Tommy Hilfiger,
Diesel, and Guess. These brands have been successful because of the styles they offer and the images they
portray in advertising. They are more in touch with the attitude, behaviour, and expectations of todays
youth.
Another successful brand, particularly with males over 35, is Denver Hayes. Denver Hayes is a private
label brand marketed by Marks Work Wearhouse. The line includes casual pants and blue jeans.
According to Marks Work Wearhouse, Denver Hayes is the second largest brand of casual pants and the
third largest brand of jeans in Canada. Denver Hayes will be a direct competitor of GWG.
For some insight into the current market share situation in Canada refer to Figure 3.
Figure 3
Market ShareJeans Market in Canada
Brand
VF (Lee and Wrangler)
Private Labels
Levis
Licensed/Designer Labels
Gap (Gap, Banana Rep., Old Navy)
GWG
All Other

2000
25.3
20.2
17.0
7.0
4.9
2.0
23.6

1996
24.5
22.1
18.7
5.2
4.2
2.5
22.8

1991
17.9
3.2
31.0
3.7
2.7
4.5
37.0

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In terms of direct competition, VF Corporation poses the biggest threat to Levi Strauss. VF manufactures
and markets similar lines under the brand names Lee, Wrangler, and Britannia. While Levis share of
market has dropped, VF brands have risen. Through marketing research VF has identified an effective
distribution strategy for each of its brands. For example, Lee brands are sold to consumers shopping in
middle tier stores, while Wrangler, Rustler and Britannia jeans are sold in mass merchandise stores. In
2000, VF rounded out their portfolio by introducing two brands specifically targeted at womenChic and
Gitano. Wrangler is strong in Western Canada with all age groups, including younger ages. Lee is more
popular in the East, and based on market share has not suffered as badly as Levis over the years.
The Challenge
As a first step in marketing GWG, Levis has decided to do a fit test with consumersthe first for the
brand since the mid-ninetiesand adjust sizes and cuts for todays body shapes. Since GWG had a
certain appeal with the Canadian baby boomer generation the plan is to target that market once again. The
price range of $29.99 to $34.99 will be retained.
The challenge, therefore, is to develop an introductory marketing communications strategy for GWG
jeans. As a starting point, a positioning strategy statement must be developed for the product line. The
unique selling proposition also has to be determined. How will GWG jeans be distinguished from
competitor lines? All marketing communications strategies must be directly linked to the positioning
strategy.
The company has its own sales force to call on department stores and specialty clothing stores. It is
anticipated that the GWG line will be available in discount department stores such as Wal-Mart and
Zellers, along with a host of smaller, regional chains stores and independent retailers. Sales promotion
incentives will be needed to secure distribution.
GWG will also need some form of marketing communications support to reacquaint and reconnect baby
boomers with the brand. What message strategy will GWG use to attract the attention of baby boomers?
What media will be recommended to reach baby boomers? What promotion incentives will they offer the
trade and consumers to give the relaunch of GWG jeans a kick-start? Starting from a base market share of
2 percent, a sales revenue and a market share objective must be established for the introductory year.
Once the sales revenue is calculated a budget for the campaign can be devised using the percentage of
sales method for budgeting.
Adapted from John Heinzl, Aero takes aim at bubble lovers, and GWG looks for a comeback, The Globe
and Mail, May 24, 2002, p. B10, Levi Strauss & Co. (Canada) to Resume Responsibility for GWG Brand
Apparel, press release, May 22, 2002, Marina Strauss, Levis gives stores a facelift to add sparkle to a
faded banner, The Globe and Mail, March 22, 2002, p. B9, www.levistrauss.com, www.marks.com.

2005 Pearson Education Canada Inc.