Natural Light Brand Audit Final Report

Carson Williams Meon Graham

Camila Valencia

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Table of Contents

Executive Summary 3

Brand Inventory 4

Product Market Overview 4

Market Analysis 4

Brand Element Analysis 8

Marketing Programs Analysis 10

Target Segment Profiles 12

Brand Benefit/Differentiation Analysis 14

Brand Exploratory 15

Consumer Research Questions 15

Research Design 15

Major Findings 16

Proposed Brand Positioning/Identity 16

Brand Recommendations 17

References 18

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The purpose of this brand audit is to formulate a complete analysis of Natural Light and its competition in the alcoholic beverage market. In order to provide an in depth and comprehensive review of Natural Light’s brand identity, research and data were accumulated. The research findings show that Natural Light has built its image on affordability in comparison to their competition. After analyzing the background and historical context in which Natural Light was created, it is clear that Natural Light has been a strong contender in the market for quite some time. Using collected research, the following report includes insights on Natural Light’s opportunities for growth and potential threats to its position in the beer industry.

The process by which this information was found includes, but is not limited to searching several databases and archives to discover the brand essence and the nuances of the marketplace. Surveys were conducted and studied in order to evaluate Natural Light’s brand awareness and perceived brand image amongst current and potential consumers. Insights were then made to determine how the Anheuser Busch sub-brand could create a more distinctive brand persona and its potential for expansion.

Throughout the course of this study, the major findings included, but are not limited to the following:

- 80% of participants were familiar with Natural Light

- 67% described it with less than appealing adjectives

- 4% know about Natural Light but have never consumed it

From these results, the research indicates that the inexpensive nature of Natural Light attracts consumers. However, the flavor deters potential consumers.

From this comprehensive study, Natural Light has several opportunities to captivate and maintain consumers. The opportunities show the most profitable results are those based on social media advertising. Natural Light has already established itself on a few social networking sites. With a broader audience and following, this could provide Natural Light with the opportunity to forgo a more challenging task: enhancing the flavor of its lager. Although, this endeavor may seem difficult and more of a nuisance with its position in the marketplace, the research suggests Natural Light’s poorly flavored alcohol is a major factor in the negative brand associations.

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Brand Inventory Product Market Overview

The Natural Light brand first launched for the alcoholic beverage market in 1977. It is housed under the parent company Anheuser-Busch, and currently sit as the number six most purchased beer in the United States. The beer industry has experienced growth and decline in the last decade, especially during the recession years, dropping 2.7% between the years 2007 to 2012. However, growth is expected to continue through 2020, with craft beer experiencing the most improvement (Food Insight, 2014).. Natural Light’s competition expands through the alcoholic beverage market, from the top sellers, such as Bud Light, Coors Light, and Miller Lite, through low cost spirits and an assortment of craft beer. Natural Light, along with their other products (Natural Ice and Natty Daddy), serve to maintain a low-calorie, low cost market focus to differentiate themselves from the top competitors.

Natural Light stand near the majority of beer brands when targeting specific audiences. Their main market focus are males, ages 21 to 34, with at least a high school educational background and medium levels of income. The data conducted represents white males as the majority consumers for beer in the United States. However, females, who seek health benefits such as low calories, make up the majority of light beer purchases. It is recommended that Natural Light focus their branding efforts more on the female population for this reason. Market Analysis Major Trends in the Product Market

American beer has undergone some changes in recent years. More consumers are leaning toward craft beers over traditional name brands. Craft beer is rising in popularity due mainly to the fact that more and more people are influenced by the local food movement (Food Insight, 2014). This movement concentrates around the idea that people should consume food and beverages made locally. Around 35% of consumers say they purchase locally produced food and beverages (Food Insight, 2014). One of the localized beverages that fit under this category is beer. This movement has hindered sales for major brands such as Natural Light and Bud; however, even with this new trend on the rise, Craft beer only makes up around 11% of the market share (Brewers Association, 2015). So it is safe to say most Americans still prefer their tasty and affordable name brand beers.

Another trend that is sweeping the nation is the low-calorie option. An increase in sales among low-calorie light beers stands to outperform those that are non-low-calorie. Since consumers are more aware and moving toward a more health conscious lifestyle, they look for those beers that offer less gut for their buck. Natural Light stands as the best beer for your buck and takes advantage of this new low-calorie environment by offering only 95 calories per beer alongside a very low price point. This has allowed Natural Light to capture more of the market share as it bumps between number five and number six on the sales chart since 2008. The image below shows Natural Light at its current standing in sales for domestic beer brands in the United States (Statista, 2015).

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Growth in the Alcoholic Beverage Market

There have been increases and decreases in sales for the alcoholic beverage market for the last decade, with beer obtaining in the majority of the market and a majority of the sales fluctuations. There was a dip in the beer industry from 2007 to 2012, with sales dropping by 2.3% due to the recession and other scaling factors. Thankfully, beer sales are back on the rise in recent years, raising an additional 2.1 billion dollars. Alongside being the most popular alcoholic drink in the world, beer is also the “third-most popular drink overall after water and tea.” (Statista, 2015). Furthermore, the total U.S. revenue of alcoholic beverages amounted to 62.13 billion U.S. dollars in 2012. Now that number has reached 101.5 billion dollars and is only expected to further rise as the years move forward. (Statista, 2015). Light Beer Owns the Market

One of the two categories to see the most growth in the alcoholic beverage market is light beer. Light beer holds the majority of sales in this market industry, taking seven out of the top ten highest selling beers. Consumers have chosen a low-calorie beer beverage over the non-low-calorie beer beverage for the last several years, with Anheuser-Busch owning the majority of top selling light beers, such as Bud Light, Michelob Ultra Light, Natural Light, and Busch Light. Craft Beer Explosive Market Jumps

Craft beer is on the rise, scoring its first double-digit share of the market last year. In 2014 alone, craft beer rose 22% and holds a total of 11% of the beer market share. Moving to 2015, craft beer rose an additional 16% from the months of January to June Brewers Association, 2015). According to Bart Watson, chief economist of the Brewer's Association, “With the total beer market up only .5 percent in 2014, craft brewers are key in keeping the overall industry innovative and growing. This steady growth shows that craft brewing is part of a profound shift in American beer culture – a shift that will help craft brewers achieve their ambitious goal of 20 percent market share by 2020.” This states that consumers are looking for alternatives to the traditional beer

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to which they are accustomed. Customers are looking toward smaller, more “at home” companies when shopping for alcoholic beverages. This rising competition among smaller brands and ultimately, the larger, more established brands, can cause a potential threat to the domestic beer market in the near future as their market share will slowly decrease over time. (Brewers Association, 2015).

Main Competition and Competition Strategies in the Market

Natural Light, sometimes referenced as Natty Light, is a strong beer brand that stands out in the minds of the consumer when choosing a cheap alcoholic beverage. Natural Light sits as the number six most purchased beer beverage (Statista, 2015). Their main focus, and slogan, is to provide the “best beer for your buck” (Natural Light, 2015). Alongside their trademark light beer, Natural Light also produces both Natural Ice (a lower alcohol content ice beer) as well as Natty Daddy (8% ABV in a 25 Oz. can). In addition to the top name brands of beer as competition, we must also look at other cheap alcoholic alternatives and, of course, craft beer is on the rise as a leading competitor. Bud Light

Unlike Natural Light, Bud Light does not focus on price but rather the customer experience when consuming their product. It uses paid television advertising and social media to refocus their brand around a new target audience: millennials. Bud Light’s new strategy was to get its new audience talking, especially about them. According to the President of Word of Mouth Marketing Association, Suzanne Fanning, “Millennials are the most connected generation of buyers the world has ever seen, but they don’t trust companies or CEOs, they trust their friends and connections, and they want to hear about real experiences from real people.”

This led to Bud Light to roll out their newest campaign strategy. Recently this year, Bud Light launched their Up for Whatever campaign to relate with the on-the-go millennial with spontaneous “blinded” events that would just “happen.” Bud Light aired their new campaign during the Super Bowl which reached millions of eyes and had consumers raving all over social media. This allowed for Bud Light to track the locations of randomly selected individuals using their hashtag and offer them a truly unique experience to test if they were actually “up for whatever.” Bud Light currently stands as

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the number one top selling domestic beer in the United States and currently holds 28.3% of the market share (Statistic Brain, 2015).

An interesting note is that both Natural Light and Bud Light are sub-brands owned by the same parent brand – Anheuser-Busch. Both of these companies target the same consumers but in drastically different ways, but seeing as Bud Light holds the majority of the beer market, it is seen as competition for Natural Light and their sales on alcohol. Miller/ Coors LightAlongside Bud Light, both Miller and Coors Light rank higher than Natural Light on the sales chart for domestic beer (Statista, 2015). Back in 2007, SABMiller and Molson Coors Brewing Company announced a joint venture to form brands such as Miller Lite and Coors Light, formerly known as MillerCoors. Miller Lite’s marketing strategy revolves around targeting those of Latino heritage. It plans to air commercials with similar messages, both in English and in Spanish, in order to tell the same story across different media. MillerCoors redesigned their story to focus the idea that Miller Lite is the beer for people who want to be themselves – the “bodega” campaign.

On the other end of the spectrum, Coors Light transitioned back to their original 1975 image. Coors Light is the beer that is “cold lagered,” “cold-filtered” and “cold packaged.” Their aim is based around the heritage of the brand. MillerCoors Chief Marketing Officer Andy England stated that, “You can argue that the Miller Lite change was revolutionary, this is more of an evolutionary change,” in regards to the Coors Light revamp. Nevertheless, both of these beers do compete with Natural Light in terms of calorie intake. Natural Light (95 calories) competes closest to Miller Lite (96 calories), despite having drastic differences in market approach (Efficient Drinker, 2015). Spirits

Just recently, more and more consumers are looking for alternative alcoholic beverages to beer, which lead to a drastic increase in sales for spirits. According to the marketing charts for millennials who drink alcohol, spirits leapt to 35.2% in Q1 of 2015 compared to Q4 of 2014. (Discus, 2015).

Alongside this growth in sales, more millennials are gearing toward the cheaper options. According to reports conducted by Goldman Sachs, millennials are drinking more frequently than past generations, up by nearly 16% in 2015 (Goldman Sachs, 2015). These millennials are also less brand loyal than other generations and often prefer the cheapest options when consuming alcoholic beverages (Goldman Sachs, 2015). This is the force that drives a lot of Natural Light’s sales but can also cause a great deal of competition with other brands promoting lower prices.

Craft Beer

As stated, craft beer is taking over market share at an incredible pace. Those who are used to domesticated traditional beer are now looking for alternatives, such as craft, to fill their household refrigerators. According to Mintel’s research, 43% of millennials say craft beer tastes better than domestic with 45% of consumers saying they would try more craft beers if they knew about them. This could become a problem for brands such as Natural Light because consumers are looking more local. Mintel’s research states that “Millennials are more likely to appreciate locally-sourced products

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or ingredients and feel a greater connection to a brand that comes from a local brewery.” (Mintel, 2015). Main Marketing and Branding Strategies in the Product Market

Over the past decade, the alcoholic beverage market has focused on differentiating each brand based on target audience or experiences for the consumer. Bud Light and other such brands release several different product line extensions in order to broaden their audience and connect with the consumer on a different playing field. Natural Light has always focused their brand as being the cheap alternative. It offers little advertising so most of their sales come from word of mouth and price. Their most effective form of marketing has been offering their consumers more for less. Natural Light’s “best beer for your buck” campaign reinforces this ideology (Natural Light, 2015). Consumer Motivators

Natural Light motivates consumers based on what their branding strategy has been all along – cheapness. It offers little variety when it comes to alcohol (only offering three types of beverages) and it are not known for having a good taste (ranked as the worst beer in the world by beer enthusiasts via ratebeer.com). However, consumers are still drawn to Natural Light based on the fact that it is so cheap. Another strong motivator for consumers when choosing Natural Light is that each can only contains 95 calories. The low-calorie, low cost approach is what drives Natural Light’s sales and ranks them as the sixth most purchased beer in the United States. Brand Portfolio Analysis

Natural Light premiered as a sub-brand of parent brand, Anheuser-Busch, in 1977. lager style of beer is low in caloric value and price. When compared to other beer brands, it’s the lighter beer. Light on your stomach and even lighter on your pockets, it was called the natural choice. By adding Natty Daddy to its line of beers, Natural Light added a product to the market that would satisfy the larger cravings of its audience. In 1995, the last addition to the Natural Light family was introduced: Natural Ice. Natural Light quickly placed its new beer as the “Best Ice Beer for Your Buck”. (History of the Best Beer, 2014) Brand Element Analysis Brand Name

Anheuser Busch Natural Light was developed on the premise that it was so light of a beer that it felt easy and instinctive. Fewer additions and fewer calories were the reasonable/better way to go. When deciding between a premium lager that packed on calories and a light pilsner with few add-ons, Natural Light was the obvious choice. After years of using the slogan “Just say Natural”, Anheuser Busch decided that it too should just say natural and shortened the brand name to Natural Light. More commonly referred to as Natty Light or simply, Natty, in 2014, Anheuser Busch decided to file a trademark opposition against Natty Greene’s Brewing Company, the third largest brewer based in North Carolina. Anheuser Busch spokesperson Adam Warrington stated that it had designed “a family of Natty-formative marks used in

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connection with beer” and it had been using it for well over a decade. Although Kayne Fisher, co-founder of Natty Greene’s described the brewing company as “a blip on the radar” in comparison to its adversary, with a macrobrand like Anheuser Busch, the organization does not want any market or brand confusion. (St. Louis Post-Dispatch, 2014) Logo

The Natty Light logo has only had a few logo transformations in comparison to some of its competitors. Since its start, Natural Light has only had two major changes to its logo. When it was first produced, Natural Light took a traditional approach by making a red and blue ribbon with the Anheuser Busch eagle as its logo. Since then, it has removed the ribbon completed and the Anheuser Busch eagle has been minimized and in some cases removed from the cans and bottles all the together. The new logo has a sleeker and simpler design with two boomerang-like objects (Figure 4). (Natural Light, 2014) Figure 3. Natural Light print ad from 1977.

Slogans When it debuted, “Just Say Natural” was the catchphrase for the beer. At the time, Natural Light had one competitor in the light beer category: Miller Lite. It was easy enough to say “natural” because no other brand had a name like it. Natural Light started using the slogan “Act Natural” in 2013 when it rolled out a new campaign. The concept was built upon reminding consumers to put down their facades, and just be themselves. Recently, Natty Light introduced a new slogan for the brand: “Best Beer for Your Buck”. This new motto implies that value and quality are benefits of choosing Natural Light. (Natural Light, 2014) (Video examples: OldTimeSportsFan & Act Natural)

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Characters

In 1977, debuted the light beer with a series of commercials featuring special guests. Although Natural Light does not use characters anymore, when the brand first made its way into the market, the featured stars were more likely to be film and television actors or comedians. Personalities that can be spotted in Natural Light commercials before the 1990s included the likes of Mickey Mantle, Norm Crosby, Bill Saluga, and Christie Brinkley. The Adding stars like the ones mentioned gave Natural light the right amount of credibility it needed to create awareness amongst potential consumers. These personalities exemplified the way Natural Light saw itself in the alcoholic beverage industry: light, laidback, and not a serious contender.

Packaging Natural Light’s packaging has kept up with the market and the times. In 1977, Natural Light started off with a traditional beer can: silver, Natural Light in a serif font, and a red and blue ribbon as its logo. In 1984, it transitioned to a white can with gold embellishments. Although it kept the red and blue ribbon, Natural was now written larger on the can and Light was less emphasized. Later, Natural Light transitioned to a can that looks much like its packaging today. The can is silver with Natural still larger than light, but with more distinction. Natural is blue, while the Light rest underneath it in red. It added two boomerang-like objects in the background.

1970s → 1980s → Early 1990s - present Marketing Programs Analysis

Natural Light has focused its advertising attempts to television commercials and print advertisements. Natural Light’s first television spots included notable comedians of the time, like Norm Crosby and Bill Saluga (as Ray Johnson, Jr.) to uphold the light-heartedness of the brand and promote the idea that Natural Light was an easy choice. Due to Natural Light’s introduction to the market in the late 1970s, there was a lot of room to experiment with different advertising strategies. When the comedic humor failed to increase the brand’s market share, Natty Light tried to use the sex appeal of Christie Brinkley to change the results. (Schwartz, 1981) After years of failing to capture a larger audience, Anheuser-Busch decided to put less of its funds into to the value brand, and

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more into its premium beer products. It wasn’t until 2009 that Anheuser-Busch decided to allocate the sub-brand a larger budget to help with advertising costs. (Greenspan, 2010) This largely out-of-home advertising campaign contained “nattyisms”. Expressions like “natthlete” and “natastrophe” were used to “describe the perfect Natty situation”. (Natural Light, 2014) In 2013, Natty brought out a new advertising campaign with a series of television spots: Act Natural. This time the brand focused its attention on consumers choosing Natty Light because it makes them feel at ease. (Video examples: How to Act Natural) Social Media

Although Natural Light has a relatively low online reputation management score, it maintains three social networking and content streaming sites: Facebook, Youtube, and Twitter.

The use of Facebook as a storytelling device is creative to say the least. Natural Light has been active on Facebook since 2009. Since it’s creation, the brand has “extended” its history by adding pictures of Natural Light in the late 1970s. (Facebook, 2009) Therefore, while Natural Light could not post in 1970s, it still chose to maintain the idea that 1977 was when the brand was “born”. With just under half a million followers, Natural Light maintains exposure with subscribers by posting updates weekly. Although the average amount of posts stays around four posts during the summer months, the overall yearly average rests at four or five a month.

On Youtube, the official Natural Light account has only five videos. Two of the short films are different edits of the same commercial. Their third video is a clip from a news broadcasting station. It covers the case of a store-owner who would have been robbed, if it hadn’t been for Natty Light that he threw at the robber causing the thief to drop everything and run. The last two videos are the plan and execution of fan experiments. Two friends decided to send a Natty Light into space, and the company agreed to support them. It was a way for Natty Light to make history without the company coming up with the idea. (Video example: Natural Light - First Beer in Space, 2011)

Activated in April of 2013, Natural Light is not as active on Twitter. Within the two years it has had a Twitter account, Natty Light has only created 29 posts. To give some

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perspective, 92% of brands tweet at least once daily. Furthermore, over half of the world’s top brands have over a 100,000 followers; @naturallight has 617.

Natural Light ranks low in terms of social networking site usage, but when it does participate, the company connects with consumers to encourage continued loyalty. Competitor Campaigns

Most of Natural Light’s top competition has been very successful in the advertising world, mainly through television commercials and social media trends- some have even aired during the Superbowl. Bud Light’s “Up for Whatever” campaign brought along the hashtag #upforwhatever and allowed consumers to share their moments with the company and its following. Bud Light created their own town - Whatever, USA - and had consumers tweeting to them, using their hashtag, to prove they were “Up for Whatever.” Over 200,000 consumers auditioned to get into Whatever, USA (Event Market, 2015). Miller Lite is also tuning into social media for its recent campaign strategy. Miller Lite is focusing on targeting consumers who use the social media app, Instagram. Through Instagram, Miller Lite is reaching out to those who have a passion for typography (as it is becoming a rising trend) and are showing much success as one of the only beer brands advertising on such mediums (Adweek, 2015). Target Segment Profiles

The target market for the beer industry is white males, between the ages of 21 to 30. These consumers have at least some high school education with a medium income. Most beer consumers seek the product because of a desired taste and often have a very high degree of knowledge of the product (Bud vs Miller, 2015).

Light beer target consumers are typically female, between the ages of 21 to 30. Unlike premium beer consumers, these consumers have a college education with a medium to high income. Consumers of light beer seek the health benefits, such as low calories. It is for that reason that light beer consumers tend to have a low degree of knowledge of the product (Bud vs Miller). While beer consumption in the U.S. has been declining over the years as shown below, 41% still chose beer as their typical drink over both wine and liquor, an increase in its 36% in 2013. According to the same Gallup study in 2013, 48% of people between the ages of 21 to 34 prefer beer. The same follows for people between the ages of 35 to 54 (Gallup, 2013). Natural Light Target Audience

The target market for Natural Light is white males, ages 21 through 34 (Mintel, 2015). Although Anheuser-Busch, Natural Light’s parent brand, is the largest beer manufacturer in the U.S., sales have declined due to the increased popularity of craft beers. A 2013 report shows that due to craft beer Natural Light has fallen to the sixth position in volume sales with 843.8 million sales (Statista, 2015).

The table below displays the differences in Natural Light’s current primary target consumer and its potential target consumer. Shifting Natural Light’s consumer target slightly will allow different brand associations to be made.

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Natural Light Primary Market Potential Market

Gender Male Male and Female

Ages 21 to 30 21 to 39

Education Some High School College and Above

Income Medium Medium

Core Target Market for Competing Brands

Natural Light’s top competitors are brands that fall both inside and outside of their parent brand, Anheuser-Busch. Bud Light’s demographic targets 21 to 30 years old, white males (Bud vs Miller, 2011). Their campaigns, such as Up for Whatever, targets millennials. Budweiser’s demographic is typically white males, ages 34 to 59 who have a strong sense of patriotism. Miller Lite targets men between the ages of 21 and 34, while Coors Light targets opportunity-seeking millennials (Bud vs Miller, 2011). Core Benefits

One of the main attributes that draw consumers into purchasing Natural Light is its low price tag. It is important to note this price difference as it could be the leading factor for the decline in sales Natural Light has faced. There is a slight possibility that because of its low price, consumers buy Natural Light just as much as its competitors. However, it would have to sell a greater amount of product to reach the sales of competitors. The table below shows the average prices of beers country-wide.

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While Natural Light is inexpensive, it does not mean its quality is worse than its competitors. As the brand’s first reduced-calorie beer, Natural Light is free of all animal products, making it appropriate for their vegan consumers. It is made with all-natural ingredients, free of added sugars. Natural Light only contains 95 calories and is fat-free and free of carbohydrates. According to Anheuser-Busch’s Natural Light Fact Sheet, it is “brewed with a blend of premium American and imported hops, and a combination of malt and corn. Its longer brewing process produces a lighter body, fewer calories and an easy-drinking character” (Anheuser-Busch, 2015).

Weight gain is often a direct result from drinking beer. Light beer is often thought to be healthier, providing the same effect to drinkers as other beers with the added benefit of weight management (Polymeros Chrysochou, 2014). Just the same, light beer’s low alcohol content is associated with a healthier outcome than other beers. Contrary to popular opinion, the low alcohol content then becomes another attractive trait and benefit more than a deterrent (Polymeros Chrysochou, 2014). Brand Benefit/Differentiation Analysis Although Natural Light shares many points of parity with other brands of beer, Natural Light’s points of differences allow the consumer to position it above other said brands when making purchasing decisions.

Points of Parity Points of Difference

Experience Offers bargain prices

Key ingredients Low calorie product

Accessibility Quality taste

There are common aspects that any and all beer brands, Natural Light included,

meet. Among these is the experience a consumer has whilst consuming the product. Whether the consumer’s goal is to become intoxicated or to enjoy a cold beer with dinner, most beers would satisfy those needs. The same can be said of the key ingredients used in the making of beer, similar all across the board, as well as how available the product is to consumers.

The benefits associated with Natural Light are obvious for those who are health conscious. With only 95 calories, Natural Light is a beer consumers can purchase without thinking about the consequences. It is perfect for those consumers who still want a quality tasteful beer, with the added incentive of weight control.

At a low, convenient price, Natural Light allows consumers to get quality taste. This low price does not mean consumers have to sacrifice taste in order to stretch their dollar. Just as refreshing, if not more so than its competitors, Natural Light serves to provide both a delicious product and an affordable price.

Natural Light provides consumers with a product that is light in body with an easy-drinking character. It is free of animal products, making it a safe product for vegan consumers. Its great taste, along with its refreshing but light quality, makes it a top choice amongst domestic beers.

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Brand Exploratory Consumer Research Questions

Consumer research questions were based on the consumer awareness of the Natural Light brand, and their social media habits and following for selected brands. Some questions allow the consumer to decide which factors they consider choosing an alcoholic beverage and why they aren’t choosing Natural Light.

1. What are consumers thoughts on Natural Light and their competitors? a. Do you drink beer? b. Are you familiar with the brand, Natural Light or Natty Light? c. What comes to mind when you hear “cheap beer”?

i. Light beer? ii. Value?

d. What’s your favorite beer brand? Why? 2. How can Natural Light enhance their messages for social media?

. Are you active on social media? a. Which of the following social media do you use? b. Do you follow Natural Light any of these social media? c. Do you follow any other brands on social media? Why?

3. How do consumers make decisions when purchasing alcoholic beverages? . How often do you drink beer? a. What are some factors that you consider when purchasing alcoholic beverages? Taste? Price? Packaging? Brand name? Experience? Friends preferences? b. How many beers do you consume in a week? c. Do you prefer drinking at home or out of your home? Neither? d. How can Natural Light convince more consumers to purchase their beer?

4. Why don’t you purchase Natural Light? Or Why do you? Research Design

In order to obtain results that would provide sufficient information to understand where Natural Light stood in consumers’ minds, a 18-question survey was conducted. Survey participants were chosen by convenience sampling; pollsters surveyed people at random through the course of one day at several locations. Such locations included, but were not limited to, university campus, shopping malls, and housing communities. Each of the three pollsters were to survey 25 people, resulting in a survey of 75 participants. Due to several irrelevant and/or biased opinions, 11 of said participant responses were eliminated from the study.

Participants were first approached with permission to take five to ten minutes of their time. Once permission was granted, researchers were to question whether or not the participant was of legal drinking age. This allowed pollsters to survey only those who were critical to the research and eliminate those who were not. Survey questions were both open-ended and yes/no questions, asked in order of general to specific, allowing the pollster to gain insight into the participants likes and dislikes. Such example of a general question would be asking the participant if he or she consumed beer, as a more specific question would be “Are you familiar with Natty Light?” At the end of the survey and at their discretion, pollsters were allowed to ask participants additional questions

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about topics and opinions that arose during the survey in order to further understand consumers’ feelings and opinion of Natural Light. Major Findings Excluding 11 surveys of the 75 conducted, the remaining 64 surveys showed that 80% of the participants were familiar with Natural Light, while only 20% were not. Among those who were familiar with Natural Light, 67% described it with less than appealing adjectives. Such comments described Natural Light’s taste as watered down, urine-like, and simply not good. Fourteen percent made neutral remarks, including descriptors such as average, adequate and “serving its purpose.” A mere 4% of those familiar with Natural Light had in fact never consumed it. The survey findings show that the vast majority of participants who were familiar with Natural Light had a negative opinion of the product. It was most commonly referred to as cheap, tasteless, and a drink for college students. It’s important to note that the 4% of those who were familiar with the product but had not in fact ever consumed it, also had a negative image of the brand. This goes to show that the brand’s less than favorable reputation amongst those who are familiar with Natural Light can affect not only current consumer retention, but also consumer acquisition. Among those unfamiliar with Natural Light, no participants were unwilling to sample Natural Light if given the option. This willingness to be introduced to a product displays an opportunity for the brand to reach new consumers. The results also show that the negative views associated with Natural Light’s brand could be the main factor keeping it from obtaining maximum profitability. Proposed Brand Positioning/Identity The research found within this report show strong recognition of the brand between consumers who have consumed natural light and those who have not. While a strong sense of brand awareness may be perceived as a good thing, many consumers associate it negatively with the Natural Light brand. The research shows a strong skew for consumers relating the brand with a terrible taste, which can cause future customers to sway toward another product. If Natural Light is able to alter the perception one has with the brand, and increase loyalty with their "reasonable price tag," it will be able to convert and capture a larger market that is currently dominated by top competing brands. As mentioned in the brand inventory section of this report, there are only a few points of parity for Natural Light in the beer beverage market. Consumers who are looking for a good, reasonable price, or are searching for a low calorie light beer, may choose Natural Light as their beer beverage choice. Natural Light has achieved their success through these two options, as well as selling in large quantities. However, these features are not strong enough to capture a larger consumer market share due to their perceived poor brand image. Natural Light needs to reinvent their image and allow consumers to understand the brand through social media interactions in order for the company to grow.

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Branding Recommendations Through the research found in the exploratory section of this report, Natural Light has honed in on the necessary features it must achieve in order to continue current consumer repurchasing and overall market expansion. A retouch on the current image of the company, a new look on social media initiatives, and a newer and more refreshing taste are the key areas Natural Light must consider in order to see growth for the brand. Brand Image Through the research conducted in the brand exploratory, there is evidence suggesting a strong correlation between the brand Natural Light (Natty Light) and a consumer perceived "disgusting taste." When asked if the consumer knew what the brand Natural Light was, the majority associated the beer with a disgusting taste - even those who had never even tried it. Natural Light must now focus on rebranding their image from a cheap beer to a more affordable domestic beer beverage. This can occur through the use of line extensions for a more costly, premium version beer. Having a premium beer allows the company to attract those who are not just looking for the cheap route, but are looking for a more enjoyable experience. Another option for Natural Light, which trickles down to the second recommended feature, is having stronger social media channels. Since Natural Light has already established a following through their YouTube page, they should target their efforts toward increasing that following. Roughly 25% of males watch a YouTube video every day (Time, 2014). Since Natural Light does not advertise often on tradition media platforms, YouTube would be a good way to show the personality the company possesses. This can be done by showcasing special events where Natural Light is hosting, or it can follow a series of advertisements showcasing scenarios of party goers and lively events with their hashtag and slogan #actnatural. Another platform that a younger, male audience dominates is Twitter (Time, 2014). Twitter is a great space that allows a brand or audience a two way communication with their peers or customers through 140 characters or less (Twitter, 2015). Twitter allows an individual or company to display who they are, their personality, what they want to achieve and more, in as little as no time. So far, Natural Light only has 617 followers on their Twitter with only four tweets. Fifty percent of customers who follow their favorite business accounts have visited or shopped at that businesses online website (Twitter, 2015). Sixty percent have purchased on a business website because of something they saw on Twitter and 43% plan to purchase regularly (Twitter, 2015). This shows a strong connection between a consumer and a brand and remains a key feature Natural Light needs to adopt in order to gain brand awareness and help others discover the term #actnatural. Through the use of social media, Natural Light can listen to what the consumers want the most out of the brand. This research comes directly from the consumer and allows Natural Light to alter their budget to fit those needs. Long-term advancement of new recipes will allow the consumer to find a taste they enjoy at a price they can afford, allowing Natural Light's brand image to shine a new light on potential new customers.

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18 Natural Light Brand Audit Report

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