Core Concepts of Marketing

(Marcin) #1
CASEAPPLICATION 51

Project


Gothrougha cross-sectionofconsumerandbusinessmagazines.Clipoutadsthatyoufeelrepresent
at leastfivebasesforsegmentation.Selectoneandapplythecriteriaofa validsegment.Writea two-
pagereport.

CASEAPPLICATION

ROLLINGROCKFINDSITSNICHE
Onthebackofeachlong-neckbottleofRollingRockbeer,aboldbutsimple"33"standsout.Plain
whiteonthedarkgreenglass,thenumbersitsenclosedinquotationmarks,squarelybelowa block
oftype,daringthedrinkertodiscoveritsmeaning.
Since]939,whenthebrewfromLatrobe, Pennsylvania,madeitsdebut,that"33"hasbeen
captwing theimaginationofconsumers.FansofthebeersteadilywroteLatrobeBrewingCo.,try-
ingtodiscemthesignificanceofthenumber.Theoriesabound, butif anybodyknowstherealstory,
theyhaven'ttold-whichonlyaddstothe"33"mystique.
This naturalmarketinghook,however, remaineduntappedformostofthebeer'shistory.The
companyrarelyranpromotionsanditsadvertisingdidlittletobolsterthe"33"myth.RollingRock
wasjustanotherbeersaddledwitha blue-collarimage,andinthewhite-collar1980ssalesbeganto
declinesteadily.
ThingsbegantochangeforRollingRockinmid-1987,whenLabatt'sUSAacquiredLatrobe
Brewing. Thenewowner,whorecognizeda goodthing,broughtina Dallas-basedpromotionsagency,
TheMarketingContinuum,andadagency, Hill,Holliday,Connors,Cosmopulous,totakeadvantage
ofthe"33" legend.
Theagenciesbelievedthatbyplayingupthenumber,theycouldpreservethebrand's unique
personality. TheyalsosoughttorepositionRolling Rockasa super-premiumbrandandsaw"33"as
thevitallinktoitslonghistory, distinctivepackaging, andspecialaura.
Howsuccessfulhasthenewstrategybeen?Salesduringthefirsttwomonthsclimbedfifteen
percentfromthesamepelioda yearearlier.Therepositioninghasalsopaidoffnicely.Thebrand's
primaryaudienceisnolongercollegestudents andblue-collarworkers.Thedemographicontoday's
averageRollingRockconsumershowsa 21 to35-year-oldwhite-collarmaleeaming$40,000ormore
peryear.
DavidMullen,executiveatTMC,saysit was clearearlyinhi s company's relationshipwith
RollingRockthatthekindof"metoo"bikiniadvertising,whichhashomogenizedsomanyofthe
majorbeers,wouldbea poordirectionforthisbrand.That'sbecauseRollingRockwasa nichebrand
tryingtocapturetheattentionof consumersanddistributorsina saturatedmarket.Themarketing
minds behindRollingRock,Mullensays,sawa windowofopportunityinthesuper-premiumseg-
ment,wherebrandslikeMichelobandLowenbrauwerelosingtheirallurewithconsumerswhowanted
something unique.SoMullenandhiscohortsdeviseda successfulprogramthatcontinuestostress
the"specialness"ofthebrand.
Source:KathyThacker."Solutions:WinningNumber,"Adweek(October28,1999):pp.40--41.

Questions:
1.DespitetheapparentsuccessofthisnewmarketingstrategydesignedbyTMC, therearepoten-
tialproblemswiththesegmentationapproachemployed.Discusstheseproblems.
2.Discussotherpossiblebases forsegmentationthatRollingRockcouldhaveused.
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