Molson Canada: Case Study Analysis The Future of Social Media as a Marketing Viable Tool
Presented to: Senior Executives of Molson
Kimberlin, R. Assignment 5-1 Page 1
Table of contents
Executive summary
Page 3
Company Overview
Page 4
Issues
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The perspective of the Molson executives
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The perspective of University administration
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The perspective of the students
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Conclusions
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Recommendations
page 7
Critical Thinking Matrix
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Exhibit 1
Page 9
Exhibit 2
Page 10
References
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Executive summary Social media is a phenomenon that grew by leaps and bounds so dramatically. As popularity exploded, businesses found it to be a cost effective marketing channel to accent their traditional marketing. Facebook, as the stand out social media network, has offered the most opportunity for personal communication. Companies began engaging their customers in more dialogue, connecting with consumers in a comfortable online forum, as well as creating new prospects through brand endorsements from current satisfied customers. With great success, there are also challenges and even failed efforts in the use of social media. As a platform, it can add significant value to a company’s marketing mix; however, without due diligence, research, planning, and execution, social media can become a liability. The use of social media for future marketing efforts is the primary goal of this presentation. It is important to understand the past in order to navigate to a successful future. As it is known Molson’s Cold Shot Campaign is an example of how a well intended branding promotion can lead to unexpected outcomes. This presentation will examine the case study of Molson Canada: Social Media Marketing by:
discussing the issues that developed during the campaign; reviewing the perspectives of all parties involved including Molson’s executives, University administration and the college students; and sharing recommendations on strategies to assist Molson in developing future social media campaigns.
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Company Overview Molson has a rich history in Canada as one of the oldest companies in the country. It has maintained the “most preferred brand” status for many years and is ranked fourth in global market share. Molson prides itself as a socially responsible company by indoctrinating a Code of Conduct that states it is “committed to promoting legal and responsible decisions about drinking” (Compeau & Quresh, 2008, p. 1). It has contributed to several charitable causes, sponsored entertainment events as well as sporting events such as the Olympics. Issues Social media marketing campaigns are a personal communication where companies are able to connect with their target markets. Social media also has the ability to create word of mouth through buzz and virtual marketing, often by opinion leaders and blogs (Kotler & Keller, 2008, p. 308). Traditional media is passive where in contrast, people actively engage social media and connect with their friends, their family and their favorite brands online. The challenges and risks involved in using social media are numerous and quite similar to traditional media such as ethical issues like false advertising, marketing to vulnerable markets, and endorsement relations. Social media also has additional risks because the tool allows for anyone to say and to do anything they want online. It is very easy for companies to lose control of their brand and its intended branding message (Postman, 2009, p. 77-82). Molson Canada experienced this exact challenge. Molson’s Cold Shot campaign had several problems that boiled up during the course of the campaign that was designed to create a virtual “dorm room” for various colleges and universities. The objective was the school with the most photos uploaded to Facebook would be declared the “Best Party” school in Canada. One problem is that the contest contradicted the Molson Code of Conduct as it promoted partying and drinking that was perceived to be in support of binge drinking. Another problem is Molson had not instituted privacy restrictions and rules that could protect non-participating students from appearing in photos that were uploaded to the Facebook site. It also created a continuation of the negative stereotyping of college students as party animals not focused on their academic studies. It further perpetuated the issue by endorsing improper behavior on college campus and in dorm rooms by underage students with creating an area labeled virtual “dorm room” on the Facebook page for each participating school. A major concern that also stemmed from this campaign was the stigma students could face when seeking employment or applying for graduate school if they participated in the contest and were photographed in inappropriate attire, displaying bad behavior, and performing illegal or lewd acts.
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Perspective of Molson Executives The “Cold Shots” promotion was designed to promote the brand with the 19-24 target market through Facebook which is the primary online destination of this demographic. According to Clark, using Facebook was an opportunity to engage the target market and possibly garner “brand ambassadors” as a result (Compeau & Quresh, 2008, p. 5). Molson ended the campaign with only a few weeks short of the original campaign end date due to the negative feedback from students and the universities. Galbraith, a Molson spokesperson, stated that the contest was a way to highlight “celebrating good times with friends after the academics are done for the day” (Compeau & Quresh, 2008, p. 6). She further stated that social media is a new experimental phase of the Molson marketing mix and there would be some lessons learned (Compeau & Quresh, 2008, p. 9). Because of the misinterpretation of the contest and the perception that developed during the campaign, it was important to uphold Molson’s Code of Conduct as the standard. Perspective of University administration The perspective of the University officials was based on protecting the reputation of their institutions and their students. They were disheartened that Molson would conduct a contest that they perceived to encourage students to behave in activities that could harm themselves or others. They also felt that Molson had created negative images of the colleges and tainted their reputation by exploiting the stereotypes that they constantly battle as “party schools.” The dean of Student Affairs at St. Francis Xavier University, MacDonald, was outraged and stated that “these kinds of programs put added stress on our ability to ensure that students have a very positive, successful academic and non-academic development” (Compeau & Quresh, 2008, p. 6). Whiteside, the chair of Ontario Committee on Student Affairs, the University of Guelph, wrote a letter that was critical of the contest. She stated that the contest encouraged irresponsible drinking behavior that did not match the Molson Code of conduct and that it had not consider privacy issues of conducting a Facebook photo contest (Compeau & Quresh, 2008, p. 7). The intention of Molson was to use social media for brand marketing purposes. The difference between the perspectives is that the campaign; although, had good intentions on Molson’s part was perceived by the university administration as poor taste. Molson’s Vice President, Devins, along with other executives believed that Molson’s intent was not to promote irresponsible drinking and was taken out of context (Compeau & Quresh, 2008, p. 9).
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Perspective of the Students The students that participated in the Molson photo competition were displaying school spirit and motivated to win a spring break trip. They did not believe that the contest was harmful in any way. The concern of students that did not participate was due to their opinion that the contest gave their university a bad name. Being labeled the party school was not the image that the students wanted for their school. They work hard to obtain their education from an accredited university and did not want their degrees tarnished by the result of this campaign. The students, who did not give consent to be photographed and appeared in uploaded photos, had cause to be concerned over violation of privacy. As an innocent by stander, these students could be perceived guilty by association for any behavior or acts by being photographed. Molson also could face liability issues with these types of photos, especially if any of the students photographed were underage and were drinking alcohol in the photos. Conclusions After reviewing the case study, the initial conclusion was that Molson made the right decision in stopping the contest at that time. The first premise was that the campaign was designed to showcase “celebrating good times with friends after the academics are over for the day.” It was determined after evaluation that the campaign was promoted by the agency at the launch giving away spring break trips and the chance to show that their school “parties the hardest.” My assumptions were that this promotion was a photo contest that challenged students to be creative with their entries for the chance to win the trip if selected as “the best image.” It was determined that the campaign skewed away from the origin intent. When left to interpretation, the students uploaded photos that were deemed inappropriate, lewd, and problematic. The second premise was that the campaign would create brand ambassadors for Molson by using Facebook. The campaign was designed to connect to 19-24 year olds that were attending colleges and universities. The purpose was to grow the Facebook membership from 17,500 and to create a word of mouth buzz for Molson’s products. The outcome of the campaign showed minimal participation by students with only 200 photo entries (Rouse, 2007) with the top school only submitting 67 photos by November 23rd and a mere 26 photos for the second place university. Also it is not certain that the additional 1500 Facebook members listed in the case study can be contributed to the contest or other marketing campaigns based on the information provided (Compeau & Quresh, 2008, p.4). Kimberlin, R. Assignment 5-1 Page 6
The last premise was that Molson’s Cold Shot campaign followed their Code of Conduct standards. Molson strives to promote responsible behavior and decision making in reference to drinking by instituting a Code of Conduct. It has developed campaigns that have demonstrated that it is a socially responsible company. It was determined that the campaign failed to live up to Molson’s standards as outlined in the Code of Conduct. The intent was misinterpreted and misunderstood so the negativity and the photo entries overshadowed the campaign. Molson in an attempt to save the brand image did pull the contest and also did not release any of the photos which did realign their efforts back to the Code of Conduct. The result of the evaluation is that Molson’s campaign did not achieve the intended goals. Molson acknowledged the issues and concerns of the students and university by pulling contest from Facebook. Recommendations Facebook is a viable tool for marketing and communication. With taking into account the many risks, companies that make ethical and responsible decisions in using social media marketing will have less liability. Facebook is a fun and emerging platform that can showcase Molson’s brand. Short term solutions for using emerging social media tools that are recommended to Molson include enhancing the current cause marketing arm of Molson via Facebook (exhibit 1). This strategy will promote Molson’s social responsibility initiatives such as the Red Left Project (exhibit 2), Responsible Choices campaign, Taxi Guy, and Student Life Education program (Molson). To extend this concept and make it relevant to the brand, Molson could introduce a concept “Party With A Purpose.” This campaign could highlight how consumers can support charities by attending fundraising events from galas, luncheons, and walk-a-thons. Another option is to create a scholarship program that is promoted through social media to engage the 19-24 target market. These positive campaigns would be a great opportunity to show Molson’s good will and repair relationships with the students and University administration. The recommendation for a long term approach to utilizing social marketing would be to create stand alone online communities around those campaigns with minimal branding to offer a safe, fun environment. Many companies have had great success with this approach that allows consumers to connect with one another and the company about mutually admired causes that is free from hard sells of products (Li, C & Bernoff, 2008, p. 118-123). Molson is a strong brand that has stood the test of time. With proper preparation and creativity, it can also use Facebook as a strong social media tool in future campaigns.
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Conclusion #1: The campaign was designed to showcase “celebrating good times with friends after the academics are over for the day.” Premise Statements: The campaign was promoted by the agency at the launch giving away spring break trips and the chance to show that their school “parties the hardest” (Nicholson, 2007). My assumptions were that this promotion was a photo contest that challenged students to be creative with their entries for the chance to win the trip if selected as “the best image.”
Evaluation of Premise Statements (inductive reasoning): Through deductive reasoning, it was determined that the campaign skewed away from the origin intent. When left to interpretation, the students uploaded photos that were deemed inappropriate, lewd, and problematic.
Results of the Evaluation: The conclusion was weak.
Critical Thinking Matrix Conclusion #2: The campaign would create brand ambassadors for Molson by using Facebook.
Conclusion #3 Molson’s Cold Shot campaign followed their Code of Conduct standards.
Premise Statements: The campaign was designed to connect to 19-24 year olds that were attending college and universities. The purpose was to grow the membership from 17,500 and to create a word of mouth buzz for Molson’s products.
Premise Statements: Molson strives to promote responsible behavior and decision making in reference to drinking by instituting a Code of Conduct. It has developed campaigns that have demonstrated that it is a socially responsible company.
Evaluation of Premise Statements (Inductive reasoning): Through deductive reasoning, the campaign had minimal participation by students with only 200 photo entries (Rouse, 2007) and the top school only submitting 67 photos rd by November 23 , with 26 photos for the second place university. Also it is not certain that the additional Facebook members listed in the case study up to 19,000 can be contributed to the contest or other marketing campaigns based on the information provided.
Results of the Evaluation: The conclusion was weak.
Evaluation of Premise Statements: Through deductive reasoning, it was determined that the campaign failed to live up to Molson’s standards as outlined in the Code of Conduct. The intent was misinterpreted and misunderstood so the negativity and the photo entries overshadowed the campaign. Molson in an attempt to save the brand image did pull the contest and also did not release any of the photos which did realign their efforts back to the Code of Conduct.
Results of the Evaluation: The conclusion was invalid.
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Exhibit 1
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Exhibit 2
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References: Compeau, D. & Quresh, I (2008. October 2). Molson Canada: Social media marketing. : Harvard Business Review Product Code: 908A14-HCB-ENG. Kotler, P. & Keller, K. (2009). A Framework for Marketing Management. (4th). Upper Saddle River, NJ: Pearson. p. 308. Li, C. & Bernoff, J. (2008). Groundswell: Winning in a world transformed by social technologies. : Harvard Business Press. p. 118-123. Molson. (n.d.) 2011 Corporate Responsibility Report. Retrieved on July 26, 2011 from http://www.molsoncoorscanada.com/responsibility/report%20view Nicholson, K. (2007, November 22). Molson using Facebook to engage Canadian students. Retrieved on July 27, 2011 from http://mediaincanada.com/2007/11/22/ molson-20071122/ Postman, J. (2009). SocialCorp Social Media Goes Corporate. Berkley, CA: New Riders. p. 77-82. Rouse, K. (2007, November 26). Molson ends Facebook "party school" contest. Retrieved on July 27, 2011 from http://www.denverpost.com/business /ci_7562948
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