BudLight_controversy_Maccarini_MKGT570_summer23

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Coastal Carolina Community College *

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3832

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Marketing

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Feb 20, 2024

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Running Head: BUD LIGHT CONTROVERSY Maccarini Background Bud Light has been engulfed in controversy since April 2023 when it formed a partnership with Dylan Harbin, a transgender activist and drag queen known as "Luscious." The collaboration was part of Bud Light's "Pride" campaign, aimed at supporting the LGBTQ+ community during Pride Month (Ceron, 2003). However, the partnership faced criticism from conservative groups who accused Bud Light of promoting "transgenderism" and "drag culture" to children. This backlash coincided with the introduction of proposed legislation by Republican state lawmakers seeking to regulate the lives of young transgender individuals, restrict drag shows, and require schools to disclose information about transgender students to their parents (Holpuch, 2023). Company Response Initially, Anheuser-Busch, the parent company of Bud Light, responded by placing the top leaders in their marketing division on leave. However, the CEO publicly stated that the company never intended to contribute to divisive issues, particularly those currently under intense scrutiny in the United States. This statement was evidently an urgent attempt at damage control aimed at mitigating potential economic losses. Relationship with Marketing Principles This incident serves as a clear example of a flawed marketing strategy, disregarding several fundamental principles covered in the course. One of the most significant shortcomings was the brand's decision to align itself with a political agenda. Bud Light appeared to be influenced by the ongoing social issues associated with the "woke" campaign and failed to adequately understand its own customer demographics (Tucker, 2023). Instead, the company took a considerable risk in hopes of being among the first traditional brands to embrace the "woke" culture. The brand's current losses highlight the fact that the majority of their traditional customers were not prepared for the company's new market direction (Fickenscher, 2023). This shift has resulted in a decline in sales, causing Bud Light to lose its position as the top-selling beer in the US after more than a decade (Durbin, 2023). In my analysis, there were several errors made by Bud Light: 1. Lack of Customer Understanding: Bud Light failed to thoroughly understand its customer base and their preferences. The decision to embrace a controversial partnership and align with a political agenda did not resonate well with their traditional customer demographic. This misalignment resulted in a loss of customer loyalty and a decline in sales. 2. Neglecting Market Research: Bud Light appears to have neglected proper market research and analysis. They failed to anticipate the potential backlash and negative reaction from conservative groups and overlooked the fact that their traditional customer base may not be receptive to the "woke" culture. This oversight led to a miscalculated marketing strategy.
Running Head: BUD LIGHT CONTROVERSY Maccarini 3. Inadequate Risk Assessment: The company took a significant risk by associating itself with a controversial figure and embracing a politically charged campaign. Bud Light underestimated the potential impact on their brand reputation and sales. A more comprehensive risk assessment could have helped them anticipate and mitigate the consequences. 4. Poor Crisis Management: Bud Light's initial response, which involved placing top marketing leaders on leave, demonstrated a lack of effective crisis management. The subsequent public statement by the CEO, though an attempt at damage control, may have come across as insincere and solely motivated by economic considerations. This response further eroded trust and exacerbated the negative perception of the brand. 5. Ignoring Core Brand Values: Bud Light's decision to prioritize a short-term marketing trend over its core brand values and traditional customer base was a significant error. By attempting to be one of the first traditional brands to embrace the "woke" culture without considering the potential consequences, they compromised the authenticity and trust associated with their brand. References Ceron, E. (2023, April 16). Influencer trans en campaña de cerveza, ¿Qué Hay Detrás del Boicot a bud light? . Bloomberg Línea. https://www.bloomberglinea.com/2023/04/16/influencer-trans- en-campana-de-cerveza-que-hay-detras-del-boicot-a-bud-light/ Durbin. (2023, June 15). Modelo rebasa a bud light como la cerveza más vendida en eeuu . Los Angeles Times. https://www.latimes.com/espanol/eeuu/articulo/2023-06-15/modelo-rebasa-a- bud-light-como-la-cerveza-mas-vendida-en-eeuu Fickenscher, L. (2023, June 21). Bud light sales take steepest hit yet since Dylan Mulvaney Fiasco . New York Post. https://nypost.com/2023/06/20/bud-light-sales-drop-26-8-amid-dylan- mulvaney-fiasco/ Holpuch, A. (2023, April 14). Behind the backlash against Bud Light . The New York Times. https://www.nytimes.com/article/bud-light-boycott.html Tucker, J. a. (2023, May 24). El fiasco de Bud Light Sacude El Mundo del marketing . The Epoch Times en español. https://es.theepochtimes.com/el-fiasco-de-bud-light-sacude-el-mundo-del- marketing_1135982.html
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