Redesign of Budweiser beer can won鈥檛 make much difference in sales
The recent Budweiser can redesign probably won鈥檛 do much to reinvigorate sagging sales of the iconic brew, say marketing professors at Olin Business School at Washington University in St. Louis.
鈥淚t is unlikely to matter much,鈥 says John Norton, PhD, senior lecturer in marketing.
The redesign is Budweiser鈥檚 12th since the beer was launched in cans in 1936.
鈥淔irms update their designs all the time,鈥 Norton says. 鈥淲ithout meaning to minimize the efforts of the design staff 鈥 who are trying to create a design that leverages the brand鈥檚 heritage yet offers a contemporary look and appeal 鈥 it just won鈥檛 make that much difference.鈥
鈥淲hen Coke went back to the iconic 鈥榗ontour bottle鈥 shape years ago, that didn鈥檛 make much difference either,鈥 Norton says. 鈥淏udweiser, Coke and Starbucks have a lot of brand equity. That 鈥榤ass鈥 of equity has a lot of inertia, which is hard to redirect.鈥
Anheuser-Busch InBev is hoping the new can will boost sales of Budweiser, which is the second most popular beer sold in the United States behind Bud Light. Shipments of Budweiser to wholesalers fell 7 percent last year in the United States, according to Beer Marketer鈥檚 Insights.
The new can design, which rolls out nationwide this summer, is designed to highlight the Budweiser bowtie and the fact that the beer is 鈥渂eechwood aged.鈥 It also will feature a quick response, or QR, code.
鈥淚f consumers were looking for cheaper brands because of the economic conditions, I don鈥檛 see how this will help,鈥 says Chakravarthi Narasimhan, PhD, the Phillip L. Siteman Professor of Marketing.
Narasimhan says the redesign should pique consumers鈥 interest in the grocery or liquor store aisle but questions whether that will be enough.
鈥淚n that sense it is like creating some buzz because of the newness of the package,鈥 he says. 鈥淏ut I don鈥檛 think it will have much of a long-term impact on overall sales.鈥
Carol Johanek, adjunct professor of marketing, says package design for brand is a key element of a brand鈥檚 overall communication strategy.
鈥淧ackage designs are typically done to reflect different target audience profiles,鈥 Johanek says. 鈥淟ike Pepsi Blue鈥檚 case study of its global package change in the 1990s to reflect the 鈥榥ew refreshing taste鈥 of its younger audience compared to Coke, or new messaging of the brand that reflects changes in why target audiences prefer your product over the competitors.鈥
It is important, Johanek says, that there is a visual transition to the new design so as not to alienate loyal customers 鈥 those responsible for the brand鈥檚 largest revenue.
In the new Budweiser can, she says, there are definitely similarities visually in terms of font, colors and graphic layout.
鈥淏rands need to have a thorough understanding of why consumers prefer their product over competitors and whether or not these attributes are being communicated through the packaging design,鈥 Johanek says. 鈥淚mpacts on market share are witnessed when consumers can quickly perceive a product鈥檚 competitive differentiation at the point of sale.
鈥淚n this case, it appears the heritage of the Budweiser鈥檚 name, along with its aging process, supports the brand鈥檚 positioning of superior taste. These elements are consistently displayed on both cans; reducing the risk of consumer confusion.鈥
Provided by Washington University in St. Louis