Recently, I penned a post about the astounding success of the latest '#Barbie' movie, pondering whether it was due to brilliant marketing genius or some other factor that attracted such massive crowds to the theaters. Many of my colleagues from comm and #marketing point it as an example of a successful marketing strategy.
However, alongside success stories, we also have tales of failure - the saga of #BudLight, the largest beer brand in the US, which chose the wrong marketing strategy.
The brewing reported a 10.5% decline in revenue during the April-to-June quarter compared to the previous year. For the first time in over two decades, it lost its position as America's top-selling beer, slipping to second place in June, trailing behind Mexican lager Modelo Especial. During the same period, Bud Light's sales plummeted by 26.5%, while Modelo's sales saw a significant increase of 13.5%. Bud Light's market share dropped to 6.8%, while Modelo held a robust 8.7% share.
As a consequence of this market loss, the company had to make tough decisions, resulting in layoffs that affected corporate and marketing roles in various U.S. offices, including St. Louis, New York, and Los Angeles. Two marketing executives, including the vice-president of marketing, were put on leave.
The lesson learned from this story is that not every fancy and modern idea will bear fruit if you forget to truly understand your customers. A failure to comprehend your target audience can lead to dire consequences for even the most prominent brands.
CEO at CS2 I GTM Operations For B2B SaaS
7moI love a good pun! Commenting on this for reach - what a fun job!