Alastair Mowat on Erronerous Drinks Marketing
On the 9 December 2010 at Centotre, Edinburgh, Alastair Mowat gave an entertaining account of his time as Marketing Director at Scottish & Newcastle (S&N). Below is a transcript of Alastair’s talk.
I hazard a guess that most of you feel, given more time in the day, you could handle marketing pretty well off your own bat. My topic today, erroneous marketing, may prove how right you are. In my 12 years (1982-1994) at the helm of marketing, I made plenty of errors, and it may be helpful for you to learn from them.
Mistake number one, Amstel lager
In the wake of Becks Bier growing volumes, we decided S&N could easily handle another premium lager. We picked Amstel and went forth with the tag line:
“The lager the Dutch wished to keep to themselves.”
The British consumer wholeheartedly agreed with that view, and after just two months I had to withdraw the product from our Managed Houses (pubs and bars).
Where did we go wrong?
- Half-hearted advertising.
- We failed to win the hearts and minds of the salesmen.
- Licensees felt we were doing well enough with Becks Bier.
- We were complacent and conceited.
Incidentally, Amstel, after several false starts, has its place on some UK bar counters now.
Mistake number two, Coors Export
Later on, I was persuaded to look for an American product. We chose Coors which enjoyed, at that time in the USA, a sincere cult following.
American beer was adjudged by many Brits as weak and washy! In fact, most lager in America was at least 5%, so the bias was strangely inaccurate. Budweiser had launched unsuccessfully while Australian lagers were making impressive ground. It was a gamble, but S&N had to improve its lager portfolio.
Ironically, I helped to re-design the Bush Bottle, but that’s another story. We’d have gone with Bush, if they had been prepared to grant us both the on-trade (pubs and bars) and off-trade (off licences and supermarkets). So it was Coors it had to be.
- I wanted to introduce Coors in a can (the famous Silver Bullet) but failed to convince my board. They wanted draught lager.
- The liquid was an export lager, which did initially do well in research against other premium lagers.
- This time we were ready with TV and all the expensive paraphernalia of an national launch. The reps and drivers attended cinemas all over the country. Speeches were made endlessly by me and a lively American called Marizenala. Actors from the USA TV sitcom Cheers took part in our TV advertising.
- We struggled to gain 100,000 barrels in our first year. Despite high endeavour, we eventually shuddered to a halt.
What went wrong?
- We tried too hard and launched in a hurry.
- We failed to pick the right name. Silver Bullet has an association with guns, violence, etc. Would have been excellent in the off-trade (off-licences and supermarkets).
- The off-trade would have been an easier market for us and less expensive.
- As we ground to halt at 120,000 barrels in our second year, our company lost heart. By this time we were under take over rumours.
- Our timing was wrong.
- We were in an educational role and we underestimated the time it would all take.
Coors now has a brewery at Tadcaster in England – what goes around, comes around.
Mistake number three, Starbrite
Ever heard of the brand? I doubt it, as we tested the brand in the North East of England. It was a fusion of beer and lager – well that was the general idea. A lager beer that was aimed directly at the young aspirational market. Newcastle had a reputation for partying and clubbing and this was to be a breakthrough. 4% alcohol by volume, bright, cheery and that word I am loathe to use in drink advertising: refreshing.
It bombed, why?
- Too early for the market.
- At that time, club goers favourites were Snakebite, Blast Away (Diamond White and Castaway), premium lagers such as Pils and Carlsberg Special.
- Drinking bottle by the neck was popular, draught tap was not wanted.
- Cider was on tap, but was popular due to Snakebite and was up to 8% by volume.
- We didn’t explain the virtues of the product well enough.
The lessons learned
I have not told you all our failures. Our stout, ‘Heavy Bevy’, McEwan’s Low Alcohol lager were also unsuccessful. God knows how I lasted 13 years. We must have done some things better, when I come to think of it, but here’s some of the lessons we learned from the failures.
- In new developments, travel quietly and cautiously and learn how the consumer reacts. Research can’t reveal everything.
- It’s no sin to adjust one’s marketing attack.
- Carry one’s natural ambassadors with you. In our case, breweries, salesmen and bar staff.
- Watch the weight of burden the salesmen has in his portfolio.
- Check and check again the quality of the liquid.
- Avoid conceit and complacency.
- Make sure the concept is understandable to the normal punter.
- Don’t exaggerate the forecast or the net profit.
- Your competitors will be ready to copy if you are successful.
- Claim the heart and respect of your target consumer. That’s what great brands achieve.
- Word of mouth is the most efficient and reassuring vote of confidence that can develop the halo effect.
The fun in marketing
Finally, I would like to end on a cheerful note and turn to the fun in marketing.
- The men and women who make it in marketing are generally amusing, have an up beat tempo and like partying.
- It’s usually three to six months before you are found out. By then you may have moved on to another brand.
- If you have a modicum of sense, marketing is a balistic caper.
- In my day, plenty of travelling about the country, especially to the hand-picked advertising and design agencies in London. Useful for weekend breaks, much of it on expenses. The MP’s copied us lot.
- Sponsorship could be a lot of joy. Whether the arts, charities or sports. Free seats, mingling with the great and the good.
- And if you were really lucky, trips abroad to conferences and the like.
- As the great Sinatra put it. We did it our way.
I would like to end on a more cheerful note
