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Bud Light Competes with Modelo for the UFC; Analyzing 2023 Holiday Spending; Breakdown on CEO & CMO relationships Misalignments.
November 1, 2023
Welcome back to another week in review, This past week we have the raging fight of Bud Light vs Modelo for the title of young men’s sports beers, insights on consumer spending for the holidays, and a report on the growing disconnect in company’s C suite.
After Bud Light’s Dylan Mulvaney influencer campaign crisis resulted in a brand boycott earlier this year, Anheuser-Busch has been trying to recover and get their brand back in the ring to compete with Modelo’s increasing sales.
To that end, Anheuser-Busch was announced last Tuesday as the official brand of the UFC in America, taking the title back from Modelo through a multiyear marketing contract.
The scandal that cost Anheuser-Busch $395 million in sales has forced their marketing team to fight like hell and regain lost ground from Modelo, no matter the cost. Spending an estimated $31.3 million on national TV advertising between Aug. 24 and Oct. 23, 56% more than the estimated $20 million it spent during the same period in 2022, according to ad-measurement company iSpot.tv.
Their goal has been clear, remove the brand rot and position outside of politics. Bud Light’s attempts to reengage with their audience through targeted veterans’ campaigns equating their brand with patriotism and traditional America are not garnering great returns, instead, they look to diversify their slimmed audience. “The UFC move is a good one” for Bud Light, said Anjali S. Bal, an associate professor of marketing at Babson College when speaking to the Wall Street Journal on the topic:
“This is a growing sport that is appealing to younger generations in a nonpolitical manner and focuses on what the brand is known for—sports, entertainment, excitement and socialization.”
Next, as marketing for the holiday season is already underway new insights from Deloitte 2023 market analysis show nearly 30% of shoppers will be responsible for close to 70% of holiday spending.
For retailers looking to win big this holiday season, you should consider engaging with the drivers of high spenders. Let’s break down the typical characteristics of high spenders:
Who are high spenders?
- They plan to spend $2,146 or more on average this season, purchasing around 10 gifts.
- High spenders are evenly split between men and women, 27-59 years old and with an annual income greater than $100K.
What are their preferences?
- They are more likely to shop for electronics and health and wellness.
- They spend nearly 3x on experiences, compared to the average holiday shopper.
- 40% plan to shop at department stores.
So how can you win?
- Start messaging early: 48% of high spenders will start the shopping process before October ends.
- Promote quality: High spenders are looking for high-quality products as a priority.
- Highlight self-gifting: 58% of high spenders can be tempted to buy gifts for themselves.
Lastly, a new McKinsey survey shows a growing divide between CEOs and CMOs amid an uneasy economy.
Chief executives and chief marketing officers often don’t see eye-to-eye on what precisely the role of CMOs entails or even on the effectiveness of corporate strategy.
9/10 CEOs say that the role marketing plays is clearly defined at their companies, but only 22% of marketing chiefs say their jobs are well-defined and understood by other C-suite executives, down from 31% in 2019.
When asked to name their marketing departments’ primary responsibilities, only 50% of CEOs gave the same answers as their own company’s CMOs, according to the survey.
What can CEOs and CMOs do then to realign and get along for the betterment of their company?
Well, CEOs need to be clear on what they’re looking to achieve, setting realistic metrics based on jointly gathered analysis, but as soon as they do they then need to delegate their responsibility to the CMO. It’s important to trust and allow the proper management to handle their end of the responsibilities, just as long as everyone’s on the same page on what we are aiming for both in the short and long term.
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